UPI has emerged as most popular and preferred payment mode in India

The RBI governor stated in a speech that after its launch in 2016, UPI has emerged as the most popular and preferred payment mode in India pioneering Person to Person (P2P) as well as Person to Merchant (P2M) transactions in India accounting for 75% of the total digital payments. The volume of UPI transactions has increased multifold from 0.45 crore in January 2017 to 804 crore in January 2023. The value of UPI transactions has increased from just Rs 1,700 crore to Rs 12.98 lakh crore during the same period. The Digital Payments Awareness Week (DPAW) will further deepen the usage and footprint of digital payments across the country.

 

The payments ecosystem has variety of payment systems that have facilitated migration to digital. Unified Payments Interface (UPI) has facilitated digital payments to merchants such as retail outlets, kirana stores, street vendors, etc. across the country. Bharat Bill Payment System (BBPS) has ensured migration of bill payments from cash / cheques to digital mode with a hassle-free and streamlined digital bill payment experience. The National Electronic Toll Collection (NETC) System has helped in migration of the toll payments to digital mode with enhancing efficiency in terms of reduced waiting time at toll plazas. The National Automated Clearing House (NACH) system has also facilitated Government Direct Benefit Transfers (DBT) payments digitally and eliminating leakages in the system. The smooth release of DBT benefits by the Prime Minister to 8.34 crore farmers under the PM-KISAN Scheme is a testimony to the reliance and deliverability of payment systems.

RBI has taken steps for internationalisation of our payment systems and cross border linkage of fast payment systems of India and Singapore i.e. UPI-PayNow. This linkage is in addition to the QR code based and UPI enabled P2M payments already happening in Bhutan, Singapore and UAE. Recently, we also enabled the visitors from G20 counties to be onboarded to UPI without having a bank account in India. Through this initiative, the G20 delegates had a first-hand experience of making merchant payments seamlessly through the UPI, during their stay in India.

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